Fair Trade Commission Guidelines on Information Transparency and Improper Marketing Practices made by Weight Loss and Body Care	Guidelines

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Prescribed by the 381st Commissioners' Meeting on February 24, 1999

1. Purpose

These Principles are specially adopted to ensure full and accurate disclosure of important information related to the weight loss and body care business, to ensure that business activities are fair and reasonable, to protect the rights and interests of consumers, and to promote fair competition in the weight loss and body care business.

2. Definitions

The term "weight loss and body care activities" as used in these Principles refers to non-medical training and methods for maintaining or improving health and appearance through the use of manual techniques, machines, tools, paraphernalia, cosmetics, and food. An enterprise engaging in non-medical activities regarding the maintaining and improving of health and appearance or teaching of such activities by any means (including but not limited to methods such as body sculpting) falls into the category of a weight loss and body care business.

3. Full and accurate disclosure of general information in writing

(1) Essential information regarding services and courses

A business shall provide full and accurate written disclosure of information related to aspects of courses, course content, unit price, and suitable participants. If the business provides continuous or combination package courses, the course's objectives, content, number of classes, length of the course, price per class, and total price of the course shall be disclosed fully and accurately in writing. If the course content must be specially arranged to suit the metabolism and figure of individual participants, the type or degree of the specialization, number of classes, schedule of charges, and upper and lower range of the charges shall be disclosed fully and accurately in writing.

(2) Information regarding products

A business shall provide full and accurate written disclosure of the products it sells, and the course materials to be purchased by participants on either a mandatory or voluntary basis, including the materials, their prices, capacities, quantities, and the appropriate users for each item.

(3) Information regarding equipment used

A business shall provide full and accurate written disclosure of the specifications of the equipment to be used in the courses and the appropriate users for the equipment.

(4) Information regarding the effects of the courses

A business shall provide full and accurate written disclosure of the expected time period for producing the desired effect in participants with normal health and metabolism.

(5) Professional qualifications of employees

A business shall provide full and accurate written disclosure of the professional qualifications and titles of the personnel actually engaged in the services listed above, and relevant professional credentials shall also be made known.

(6) Other important information

Other important information regarding the products and services of the business shall be disclosed fully and accurately in writing. If a membership system is used, the types of memberships and the rights and obligations of members shall be clearly disclosed. If discounting or preferential pricing is offered, a comparison between the original pricing and the discounted or preferential pricing shall be clearly disclosed.

4. Method and timing of the disclosure of general information

The important information specified under Point 3 of these Principles shall be disclosed in writing in the Chinese language and shall be displayed in a visible place in the business's premises and be made easily accessible to consumers. The business shall make sure that consumers have read all information regarding the business before entering into any agreement with the business.

5. Disclosure of information regarding specific agreements

Before entering into specific agreements with consumers, a business shall provide full and accurate written disclosure of the areas of service, their content, nature, effects, methodology, side effects, potential risks, and an analysis of effects. The business shall also provide full, accurate written disclosure of the products provided, and their content, ingredients, nature, effects, quantities, and prices, and the names and professional qualifications of the employees providing the services. Before entering into the agreement, the business shall also show consumers the actual products, instruments, and materials used.

6. Execution of contracts and period for advance review

For any business using a membership system or providing continuous or combined package courses, a written contract shall be executed and the consumer allowed a period of not less than seven days for advance review of the contract before execution.

7. Prohibition against improper marketing

(1) Businesses shall disclose to consumers the scope of free trials when consumers respond to advertisements therefor. Prior to conclusion of the free trial, the business may not enter into further transactions with the consumer or take advantage of the situation to collect charges of any kind from the consumer.

(2) Businesses claiming to use standard contract forms issued by the Department of Health may not change or delete any provisions in those forms that are advantageous to the consumer.

(3) When providing services, businesses may not engage in any promotions that would increase the cost to consumers or collect charges in addition to those originally agreed upon. In addition, businesses may not exploit consumers in an awkward situation or while they are receiving weight loss or body care services by engaging in promotions using coercion or harassment to increase consumer costs in any way. Before conclusion of the original course of services, businesses may not promote other courses of the same type.

8. Legal consequences

If a business engages in any of the acts listed below in transactions with consumers, it may be in violation of the Fair Trade Act:

(1) Concealment or delayed disclosure of important information in transactions in violation of Points 3, 4, 5, or 6 of these Principles in a manner obviously unfair to consumers and sufficient to influence the trading order in the weight loss and body care business;

(2) Inconsistency between information disclosed to consumers and the products and services provided, constituting deception of consumers sufficient to influence the trading order in the weight loss and body care business; and

(3) Using marketing methods in violation of Point 7 of these Principles that result in deception or obvious unfairness to consumers sufficient to influence the trading order in the weight loss and body care business.